Lunchtime Links 6-16

June 16, 2010

$250k deposit insurance limit to be made permanent, retroactive (Paletta/Luccetti, WSJ) Savers in IndyMac, which failed before deposit insurance limits were raised, can now put in a claim for lost deposits over $100k. I argued a year ago that this bailout never deserved the “temporary” moniker in the first place, that it would never go away. The problem is that deposit insurance, which is supposed to stabilize the banking system, can actually DEstabilize it by compounding moral hazard. That’s what this does.

Housing starts plummet in May (CR) This is good news folks. The economy can’t recover until housing recovers, and housing can’t recover — not sustainably — until supply declines…

Judge releases some Blago wire taps (Kozlov, CBS) Was chatting with a friend over the weekend who worked in Blagojevich’s office briefly. He told a story about how the IL governor refused to take a certain trip to Washington, that would have clearly benefited the state, because his wife refused to go. His wife refused to go because staff thought it a bad idea to grant her request to use state resources to turn the trip into a fun vacation for her and her friends.

Look who decided to show (flickr) For Tetris fans…

Swedish subway system (leenks) Pretty cool…

Stuck man cuts off own arm (MSNBC)

Seen at the Brazil – North Korea soccer match (imgur) Hilarious.

A German student created a major traffic jam in Bavaria when he ‘mooned’ a group of Hell’s Angels, hurled a puppy at them and then escaped on a bulldozer. (Orange News) This has to be a joke…

BP buys 32 of Kevin Costner’s oil cleanup machines (ABC) As Yves Smith remarked: “if you build it, they will come.”


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yes… the decision on extpanded fdic insurance is shocking… totally unexpected, I agree.

Posted by Beezlebufo | Report as abusive

I’m very suspicious of Costner’s machines – they centrifuge a given quantity of liquid. That means if the oil is very dispersed, you’d have to put a tremendous quantity of slightly tainted water through the machines. The run time would be the same regardless of the amount of oil in the water since the thing works on the principle of separation by density. Need I mention there are quite a few gallons of H2O out in the Gulf?

It would be wonderful for cleaning the contents of a swimming pool or even a small pond that has been subject to a spill, so there is a use for the gadget – but in the Gulf those machines will be running until the cows come home – or rather until the pelicans come clean. It’s true that every little bit helps.

Posted by Chicagoboy | Report as abusive

You have to give Costner credit for using his personal resources to actually do something positive for the environment as opposed to the many high school dropout actors and actresses in Hollywood who sit on the sidelines and carp about how nothing is being done.

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